Construction labour: Will the UK construction labour shortage scuppers ambition to build 1.5 million homes?

The UK government has announced a £600 million investment to train up to 60,000 construction workers by 2029. This initiative aims to address the severe skills shortage in the sector and support the national goal of building 1.5 million homes by the end of the current Parliament. Construction is facing a growing demand for skilled workers. Recent figures from the Office for National Statistics show over 35,000 job vacancies in the sector. Many employers report difficulty filling these roles due to a lack of the necessary skills. This shortage threatens the delivery of vital housing and infrastructure projects across the country.

Construction Bootcamps to be introduced in UK Government Plan for Change

To address the chronic shortage of construction labour, the government will fund new training placements, create Technical Excellence Colleges, expand Skills Bootcamps, and introduce foundation apprenticeships. These measures are part of the broader Plan for Change, which aims to drive economic growth and create long-term employment opportunities.

A key element of the plan is the creation of 10 new Technical Excellence Colleges, backed by £100 million. These colleges will offer specialised training in construction and provide clear career pathways for young people. An additional £165 million will help existing colleges deliver more construction-related courses, including NVQs, BTECs, and T-levels.

Skills Bootcamps will receive £100 million to train new entrants, upskill existing workers, and support those returning to the industry. These short, intensive courses will provide practical, job-focused training aligned with employer needs.

Foundation apprenticeships, set to launch in August 2025, will receive £40 million in funding. These will help young people gain hands-on experience in construction, leading to advanced apprenticeships. Employers will be given £2,000 for each foundation apprentice they take on and retain, while the government will fully fund the training through the new Growth and Skills Levy.

Construction job training: 40,000 technical construction work placements announced

The government will fund over 40,000 industry placements annually to enhance real-world training opportunities. These placements will be available to learners on Level 2 and Level 3 courses. The Construction Industry Training Board (CITB) will contribute an additional £32 million to support this effort. This will ensure students are site-ready and more likely to progress into long-term roles.

Support for small and medium-sized enterprises (SMEs) is also a priority. The CITB will expand its New Entrant Support Team (NEST) programme to help SMEs recruit, train, and retain apprentices. An £80 million capital fund will support bespoke training programmes tailored to employer needs.

Construction Skills Mission Board to lead race to upskill UK construction labour

To provide direction and leadership, a new Construction Skills Mission Board will be established. Co-chaired by the government and the Executive Chair of Mace, the board will develop an action plan for construction skills. It will bring employers, training providers, and government departments together to ensure the workforce meets future demand.

The Department for Education and the Department for Work and Pensions will continue promoting construction as a promising career path. They aim to showcase opportunities through targeted campaigns, encourage more young people to join the sector, and highlight employers who invest in skills development.

Maths and English no longer a barrier to entering jobs in construction

The announcement builds on earlier reforms introduced during National Apprenticeship Week. These included easing English and Maths requirements, adjusting end-point assessments, and introducing shorter apprenticeships to make it easier for individuals to enter the workforce. The construction industry is central to the government's growth strategy. With this new investment, more people are expected to gain access to secure, well-paid jobs. The sector will benefit from a sustainable supply of skilled workers ready to build the homes and infrastructure the country urgently needs.

FAQs

1. What is UK Government training target to train new workers in the construction industry?

The investment aims to train up to 60,000 skilled workers by 2029, helping to build 1.5 million homes and reduce skills shortages in the construction sector. This is to address a severe skills shortage in the construction and housebuilding sectors (Office for National Statistics show over 35,000 job vacancies), and to support the national goal of building 1.5 million homes by the end of the current Parliament.

2. Who can benefit from the Construction Skills Bootcamps and apprenticeships?

These training programmes can benefit new entrants, those returning to the industry, and current workers looking to upskill.

3. What support is available for UK employers seeking to support young people into jobs in construction?

Employers will receive financial incentives, such as £2,000 for each foundation apprentice, access to bespoke training funds, and support through expanded CITB programmes.